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Yesterday, 20:01

What term perfectly describes the a slowdown in the rate of increase in the consumer price index?

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  1. Yesterday, 22:22
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    The answer is Disinflation.

    Explanation:

    Disinflation can be observed when the rate of increase in the consumer price index slows down. In disinflation, prices do not actually drop, it is only a temporary slowing down in the pace of inflation (price increase), and it should not be confused with Deflation, where prices actually drop.

    Common causes of disinflation include decrease in the rate of money supply to the economy, recession (business cycle contraction), growth in unemployment rate to mention a few.
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